Are you thinking about renting a villa on the Costa Blanca next year? If so, whether you’ve got your eye on a 4-bedroom villa with a large swimming pool in Aspe for £1,220 a week, or a 2-bedroom villa close to the shops in La Marina for £675 a week, you’ll want the best exchange rate.
After all, if the pound is flying high, you’ll receive more euros when you rent a Costa Blanca villa, giving you more spending money! With this in mind, let’s take a look at what could happen to the GBP/EUR exchange rate next year, and how this could benefit you when you rent your dream villa on the Costa Blanca.
The great news is, you could a lot receive more spending money when you rent a Costa Blanca villa in 2017, because the pound looks set to rise. Why? Well first, because this week the OECD has upgraded its 2017 GDP outlook by +0.2%, to 1.2%. This tells us that the UK will continue to grow solidly next year, in spite of the uncertainties of Brexit.
What’s more, UK chancellor Philip Hammond has promised to invest an extra £122 billion in the UK’s infrastructure in the next 5 years too. This could also lift the exchange rate, giving you more euros when you rent a Costa Blanca villa!
Elsewhere, the exchange rate also looks set to strengthen in 2017, giving you more spending money on the Costa Blanca, because there’s a higher chance of populism in the Eurozone. To be specific, following Donald Trump’s presidential win in the US last month, it’s thought that National Front leader Marine La Pen enjoys better odds of winning France’s presidential vote in 6 months.
If Ms. La Pen triumphs, she’s promised to re-examine France’s membership of the EU, and might even bring back the franc! This will drag down the euro, giving you more euros when you rent a Cost Blanca villa!
With all this in mind, 2017 looks like a fantastic time to rent a Costa Blanca villa, as the favourable exchange rate will stretch your budget further! Already for instance, the pound has strengthened +8 cents against the euro in the last 2 months to 1.19, its strongest since early September, and could climb higher, looking ahead.
Given this, whether you intend to rent a 4-bedroom detached villa with a BBQ in Ciudad Quesada for £1,295 a week, or a 2-bathroom villa with several sun terraces in La Escuera for £630 a week, next year will be a fantastic time to do so, as you’ll enjoy more euros to spend!
By Peter Lavelle at foreign exchange broker Pure FX http://www.purefx.co.ukShare